Innovate Business Services has received a number of requests from networks, lenders and insurers looking to regulate behind the scenes what their advisers do .
The company will vet new advisers and monitor and audit regulatory standards either as a consultant or as an outsourced or white labelled offering.
It also provides technical services for complaints, financial promotions, DPA, monitoring and financial monitoring among other areas.
Colin Preston, managing director of Innovate, says that the risk facing many of the emerging networks is that they have to hire a huge range of compliance expertise to cover all disciplines with a high price tag, which is a tough commercial risk when you don't know what your customer base will be.
He says: “£500,000 of salary is sustainable long-term with a client base exceeding 1,000 advisers but is uncompetitive when there are only 300.
“The alternative compliance risk is to keep compliance costs to a minimum by hiring compliance all-rounders – but they do not know what they do not know.
“Innovate provides an alternative cost effective route to real and substantial expertise balancing across these two risks.”